In the aftermath of the collapse of Silicon Valley Bank, Michael Burry is making comparisons to crashes in 2000 and 2008.
The investor immortalized in The Big Short tweeted on Sunday that “hubris and greed” are common themes and that people “take stupid risks, and fail.” Then, policymakers “print money” to fix the situation, he said.
Burry, who runs Scion Asset Management, has since deleted the tweet. He did not respond to a request for comment.
Burry is known on Twitter for his proclamations of looming risks to markets and the economy, with recent missives warning that inflation will spike again and instructing traders to “sell” ahead of February’s Federal Reserve meeting. His latest tweet taps into the fear surrounding the fallout from Silicon Valley Bank’s failure and potential contagion to other US banks. New York’s Signature Bank was closed by state regulators on Sunday and regional bank stocks plummeted in Monday trading.
Policymakers are attempting to stem the damage from SVB’s collapse with a new backstop for banks that Federal Reserve officials say can protect deposits at US banks. Goldman Sachs Group Inc. economists no longer expect the Fed to hike rates at its meeting next week, as the central bank attempts to contain the growing crisis.
This article was provided by Bloomberg News.